Why does USAA credit cards charge a foreign transaction fee to Active Duty Military members serving overseas? I understand you wave the fee for a year for anyone deployed, but when it's a PCS it's only for the first year. This is not fair and forces your members to look elsewhere to save on those charges. Pentagon Federal Credit Union does not have a foreign transaction fee for anyone. What gives?
In addition, we travel alot overseas and are now retired. Come on guys .... do you really NEED to charge those fees to any of your members? Retired, Active Duty, those serving now overseas....why not treat the fees like you do the ATM fees?
USAA is the best! Love USAA and have been members for over 38 years. Now do the smart thing and stay competative with Pentagon Federal!
Would be nice if USAA did away with that fee, but then they would probably have to off set it with higher interest rates. I love my low interest USAA MC - Pentagon's is much higher. I have two other cards that don't charge the fee that I use when overseas.
Those banks that charge a fee usually do so on top of the 1%. So that 3% is really 4%.
That said, NFCU and a few others are starting of offer cards that do not charge any foreign transaction fee at all. Presumably they offset the 1% by reducing the rewards or other benefits associated with that card.
Yeah, I used to use my USAA Master Card Rewards for almost everything I purchased while overseas until I noticed I was losing over a hundred dollars a year in foreign transaction fees.
I switched to Navy Federal Credit Union which offered a rewards card without those fees.
Recently, USAA has switched all its cards to Visa and are now getting rid of those foreign transaction fees for all Visa cards.
This is awesome news, and I am glad they listened. Though it will be a challenge for them to switch everyone with Master Cards to Visa, this is a great move for those of us living overseas.
I may start using my USAA card while overseas now.